KaiViti Inc. manufactures and sells household furniture in Vanuatu. It operates its Household Furniture Division as a profit center. The company's operating data for this division for the year ended December 31, 2018, are as shown below. Difference from Favourable/ Budget Budget Unfavourable Sales $3,500,000 $50,000 Favourable Cost of goods sold Variable 1,300,000 38 000 Favourable Controlled fixed 200,000 3,000 Unfavourable Selling and administrative Variable 180,000 6,000 Unfavourable Controlled fixed 50,000 4,000 Unfavourable Non-controllable fixed costs 70,000 4,000 Unfavourable In addition, KaiViti Inc. incurs $180,000 of indirect fixed costs that were budgeted at $175,000. Twenty percent (20%) of these costs are allocated to the Household Furniture Division. Required: 1. Prepare a responsibility report for the Household Furniture Division for the year. (15 marks) 2. Comment on the manager's performance in controlling revenues and costs. (5 marks) 3. Identify any costs excluded from the responsibility report and explain why they were excludes